The chart shows the marginal cost of producing apple pies. this chart demonstrates that the marginal cost initially decreases as production increases. initially increases as production increases. eventually decreases as production increases. eventually increases as production decreases.

This chart demonstrates that the marginal cost initially decreases as production increases.

Marginal Cost refers to the cost of producing an additional unit of a good. As production increases, marginal costs will initially decrease.  

In the short run, factors of production like capital are fixed. Only labor is variable and varies with the number of units produced. Initially, employing more labor results in better productivity and help in decreasing the marginal costs. However, as more units of labor are employed, labor become less productive and the law of diminishing marginal returns sets in. Hence the marginal cost curve begins to rise.  

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